Upstream ownership and export policy reversal

Po-Sheng Ko (), Chien-Hui Lee (), Jen-Yao Lee () and Yun-Ru Li ()
Additional contact information
Po-Sheng Ko: Department of Public Finance and Taxation, NKUST, Taiwan
Chien-Hui Lee: Department of International Business, NKUST, Taiwan.
Jen-Yao Lee: Department of International Business, NKUST, Taiwan.
Yun-Ru Li: Dept. of International Business, NKUST, Taiwan; Dept. of Management, AFIT, Taiwan

Economics Bulletin, 2026, vol. 46, issue 2, 558 - 567

Abstract: This note shows that upstream ownership can reverse the standard result in strategic trade policy. In a vertically related market, we demonstrate that partial ownership weakens vertical rent extraction and turns export taxation into export subsidization under discriminatory pricing. Under uniform pricing, ownership strengthens the incentive to subsidize exports and may lead to the exit of the foreign firm. These results highlight the importance of ownership structure in determining trade policy.

Keywords: Shareholding; Strategic Trade Policy; Tariff; Subsidy (search for similar items in EconPapers)
JEL-codes: D4 F1 (search for similar items in EconPapers)
Date: 2026-06-30
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2026/Volume46/EB-26-V46-I2-P46.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-26-00260

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().